Pit and Quarry

The industry is changing

Pit & Quarry magazine has been around for nearly 100 years, and looking through old issues, I’m struck not by how much things have changed, but by how much things have stayed the same. Go to the “Looking Back” page at the end of most of our issues, and you’ll often see 50-year-old equipment that doesn’t look all that different from what you use today.

The same holds true when looking at old pictures of association meetings. Women now have a larger role in our industry, including Joy Pinniger as president of the industry’s national association, but this is still very much a male-dominated industry.

However, some things are beginning to move forward. The change is driven by two things: the heightened sensitivity of the public to environmental concerns and the desire of aggregate producers to be more efficient.

We all know it has become more and more difficult for producers to obtain operating permits. In an effort to keep their environment clean, water safe and neighborhood quiet, citizens often don’t want pits and quarries in their backyard. Of course, it’s not only our industry that is affected. All mining and construction now is done under a watchful public eye.

This has led to green construction and the sustainability movement. And while many producers view this as a negative, it is actually a tremendous opportunity. “Some small companies may perceive the sustainability trend as a threat to their business,” says Michelle Keil, sustainable development engagement manager for Caterpillar Inc. “They may miss opportunities for obtaining bids,” she says.

In the coming years, companies that follow sustainability practices, including aggregate companies, will more likely get jobs and sell product.

In regards to the other big industry change – equipment and technology – much of it was on display at the AGG1 Aggregates Forum & Expo in Charlotte, N.C. Driven by new technologies, much of the equipment used in the industry is getting smarter, cleaner and easier to operate. And the changes are accelerating. Keep watching the pages of Pit & Quarry as we bring it to you every month. -Darren Constantino

Wild West

California’s Office of Mine Reclamation (OMR) is threatening to stop Lehigh Southwest Cement Co.’s Permanente Quarry from selling material to government agencies, and the clock is ticking. In a letter dated July 20, the Cupertino company was handed a 30-day notice that it must comply with state reclamation regulations or be taken off the AB 3098 List. Quarries on this list can sell mined materials to governments but must have approved reclamation plans and the financial assurances that they can cover the associated costs. Lehigh’s violations include the instability of pit slopes as well as surface mining operations occurring outside an approved reclamation boundary, which should have been addressed by December 2007, the letter states. Lehigh must correct these violations to comply with the Surface Mining and Reclamation Act of 1975. Lehigh has been working with the Santa Clara County planning department, the lead agency on the issue, and said it’s in full compliance with the law, according to an article in the Los Altos Patch. We probably haven’t heard the last on this West Coast dispute. – Brian Richesson

Safe scales

We had a good conversation last week with in-house counsel for a group of companies that includes Lakeview Rock Products, a 1- to 2-million-ton producer of sand and gravel in the Salt Lake City area.

Lakeview had prevailed in a June case against MSHA, which cited the operator for lacking guardrails on its truck scales. Lakeview utilizes 8-in. rub rails on six total scales at its three pits. In its citation, MSHA claimed the scales “were not provided with berms or guardrails that were mid-axle height of the largest self-propelled mobile equipment that travels the roadway.” That mid-axle height at Lakeview is about 24 in., well above its rub-rail height.

For Kevin Watkins, general counsel for Lakeview, MSHA’s claim “rubbed me the wrong way. They were trying to push a square peg into a round hole,” he told us. Watkins said the regulations didn’t make sense to him because they appeared written for regular roadways where berms serve as barriers to a drop-off.

“We actually took video of the owner driving a 10-wheeler across the scales and trying to drive off the scales,” Watkins said. “He couldn’t do it.” Administrative Law Judge Kenneth Andrews agreed with Lakeview, rejecting the citation and concluding that MSHA failed to prove a risk that vehicles could overturn on the scales.

“Not having to build those rails saves us a ton of money,” said Watkins, adding that he hopes the outcome will help other operators. “At least, it gives them a little bit of encouragement to push back if they have scales as safe as ours. In the end, if there’s really a problem, MSHA needs to write a rule that applies to the scales.” – Brian Richesson

Revising the rules

Construction firms now have time on their side. Last week the California Air Resources Board approved revised off-road diesel emissions regulations and delayed their implementation four years – until 2014. Michael Kennedy, general counsel of the Associated General Contractors of America, said the revisions "allow hard-hit construction firms the time and flexibility needed to modernize their diesel equipment in a way that actually delivers meaningful environmental benefits to the state's residents." Firms can modernize their fleets with more efficient equipment coming online in the coming years, Kennedy said. The revised rule also gives contractors credit for efforts they have already made to reduce emissions and rewards contractors for voluntarily reducing emissions before 2014. There are an estimated 150,000 off-road vehicles used in California. – Brian Richesson

Brace for impact

With 2010 winding to a close in a hurry and a full slate of issues on the horizon in 2011, NSSGA took some time last week to address current events and ongoing concerns affecting the aggregates industry.

John Hayden, vice president of environment, safety and health; Pam Whitted, vice president of government affairs; and Joe Casper, vice president of safety services, tackled three hot topics during a 50-minute webinar: EPA actions, election results and MSHA activities.

Hayden focused on EPA actions and current activities, including one that troubles him the most: EPA’s recommendation to change particulate matter/national ambient air quality standards (PM NAAQS) from 150 micrograms per cubic meter of air (ug/m3) to 65-75. Hayden called this “the most significant impact to our industry in the last 10 years,” because it would force aggregate operations to back off production or limit sales to comply with the lower standards. “The economic impact to producers is going to be great,” Hayden added.

As an example, Hayden detailed how the proposed rule would affect a Georgia aggregates operation producing 1,200 tph at current air quality standards. With EPA's rule in effect, the same operation could only produce 362 tph.

EPA’s proposed rule is scheduled for February 2011, with a final rule set for October 2011. NSSGA doesn’t believe that EPA has enough air quality data to justify lowering the standard, and it will continue to fight this proposal.

The nation waged a political fight on Nov. 2, when a dramatic change occurred in Washington, D.C. Republicans gained control of the House of Representatives in a significant shift of power not seen since the 1938 midterms, while Republicans also gained impressive control at the state level, NSSGA’s Whitted said. In her presentation, Whitted noted that bipartisanship is necessary and a reality with a Democratic president and Senate and a Republican House.

There are also new chairmen of House committees with jurisdiction on aggregates industry priority issues as well as a loss of congressional transportation champions. “Any [surface transportation] reauthorization bill we will see is probably going to be a slimmer version of what we have gotten familiar with,” said Whitted, urging the aggregates industry to get involved in key issues. “It may be a shorter bill, and we still have to find some additional funding.”

Other legislative topics NSSGA continues to follow are mine safety, accurate definition of minerals, wetlands expansion, card check and climate change. NSSGA’s Casper concluded the webinar with a look at challenging provisions in mine safety legislation. – Brian Richesson